10-K: United Bankshares Reports Strong 2025 Growth & Profitability

Sentiment:

Annual Report 27 February 2026 1:06 PM

📋All filings for United Bankshares Inc/wv

United Bankshares, Inc. announced significant financial growth in 2025, driven by a major acquisition and increased net income and diluted earnings per share.

Capital raiseIssued 7,860,831 shares of common stock valued at $280.95 million as consideration for the acquisition of Piedmont Bancorp, Inc. on January 10, 2025.The Board of Directors approved a new repurchase plan (the 2025 Plan) on November 20, 2025, to repurchase up to 5,000,000 shares of common stock on the open market, replacing the 2022 Plan.Repurchased 3,587,948 shares during 2025 at a cost of $126.45 million under the 2022 Plan and 2025 Plan.

Better than expectedNet income increased by 24.56% and diluted EPS by 18.9% year-over-year.Return on average assets and return on average tangible equity both improved significantly.Net interest income grew by 20.97%, indicating strong core banking performance.Total assets, loans, and deposits all experienced substantial growth, partly driven by a successful acquisition.

Summary

Total assets increased by $3.64 billion, or 12.11%, to $33.66 billion as of December 31, 2025, primarily due to the acquisition of Piedmont Bancorp, Inc. which added $2.30 billion.
Net income for 2025 rose by $91.61 million, or 24.56%, to $464.60 million, resulting in diluted earnings per share of $3.27, up from $2.75 in 2024.
Net interest income increased by $191.10 million, or 20.97%, to $1.10 billion in 2025, driven by higher average earning assets and a lower average rate paid on deposits.
The loan and lease portfolio, net of unearned income, grew by $3.04 billion, or 14.01%, to $24.71 billion, with $2.02 billion attributed to the Piedmont acquisition.
Deposits increased by $3.10 billion, or 12.93%, to $27.06 billion, with $2.11 billion from the Piedmont acquisition and $993.74 million in organic growth.
The provision for credit losses increased to $53.87 million in 2025 from $25.15 million in 2024, mainly due to a $18.73 million provision for purchased non-PCD loans from Piedmont and increased provision for commercial real estate non-owner occupied (CRE NOO) loans.
Net charge-offs for 2025 were $45.71 million, up from $12.55 million in 2024, including $21.77 million from two CRE NOO loans.
Nonperforming loans increased by $28.07 million, or 38.24%, to $101.47 million as of December 31, 2025.
The allowance for loan losses (ALL) increased by $25.68 million, or 9.44%, to $297.52 million, representing 1.20% of loans and leases, net of unearned income.
The company maintained a well-capitalized status with strong regulatory capital ratios: Common Equity Tier 1 (CET1) of 13.4%, Tier 1 capital of 13.4%, Total Capital of 15.7%, and a Leverage Ratio of 11.3% as of December 31, 2025.
United Bankshares, Inc. extended its record of consecutive annual dividend increases to 52 years, with dividends per share of $1.49 in 2025.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a strong performance, marked by significant growth through acquisition and solid organic financial metrics, despite an increase in credit loss provisions. The consistent dividend increases and robust capital position underscore stability.

Positives

Net income increased by 24.56% to $464.60 million in 2025, demonstrating strong profitability.
Diluted earnings per share grew to $3.27 in 2025 from $2.75 in 2024.
Return on average assets improved to 1.41% in 2025 from 1.26% in 2024.
Return on average shareholders equity increased to 8.63% in 2025 from 7.61% in 2024.
Return on average tangible equity (non-GAAP) rose to 13.95% in 2025 from 12.43% in 2024.
Net interest income increased by 20.97% to $1.10 billion, reflecting effective balance sheet management and acquisition benefits.
Total assets grew by 12.11% to $33.66 billion, significantly boosted by the successful acquisition of Piedmont Bancorp, Inc.
The loan portfolio expanded by 14.01% to $24.71 billion, with substantial growth in commercial real estate and other commercial loans.
Deposits increased by 12.93% to $27.06 billion, indicating strong customer relationships and funding stability.
Noninterest income increased by 9.26% to $135.15 million, driven by net gains on investment securities, brokerage fees, and bank-owned life insurance income.
The company achieved its 52nd consecutive year of dividend increases, paying $1.49 per share in 2025.
Capital ratios significantly exceed regulatory 'well-capitalized' minimums, demonstrating robust financial strength and stability.

Negatives

The provision for credit losses increased significantly to $53.87 million in 2025 from $25.15 million in 2024, partly due to acquisition-related provisions and increased provisions for commercial real estate non-owner occupied loans.
Net charge-offs rose to $45.71 million in 2025 from $12.55 million in 2024, including $21.77 million from two commercial real estate non-owner occupied loans.
Nonperforming loans increased by 38.24% to $101.47 million as of December 31, 2025.
The allowance for loan losses as a percentage of nonperforming loans decreased to 293.22% in 2025 from 370.36% in 2024, indicating a lower coverage ratio for problematic assets.
Mortgage loan servicing income decreased by 100% in 2025 due to the sale of the remaining mortgage servicing portfolio in the second half of 2024.
Income from mortgage banking activities decreased by 40.42% due to lower mortgage loan production.

Risks

Extensive government regulation and supervision, with potential for new or changed laws, regulations, or interpretations that could increase costs or limit services.
Failure to comply with regulatory capital requirements could impact dividend payments, equity repurchases, and executive compensation.
Earnings are significantly affected by the fiscal and monetary policies of the federal government and its agencies, particularly the Federal Reserve Board.
The adequacy of the allowance for credit losses is subject to management judgment and macroeconomic forecasts, which could undergo material changes, leading to increased provisions or charge-offs.
Inherent credit risk in the loan portfolio, with potential for significant losses due to economic downturns, declining collateral values, or borrower defaults.
Concentration of credit exposures in certain industries, which may be more susceptible to long-term risks of climate change, natural disasters, or global pandemics.
Operational risks, including failure, interruption, or security breaches of information systems, cyber-attacks, criminal activity, and human errors, potentially leading to reputational damage, litigation, and financial liability.
Increasing fraud risk, including cyber fraud, identity theft, and account takeover, which could result in financial losses, increased operational costs, and regulatory scrutiny.
Technological advancements in the financial services industry, with competitors having greater resources, and potential unintended consequences from new technologies like artificial intelligence.
Inability to attract and retain skilled employees or loss of senior management team members could adversely affect business strategy and results.
Dependence on third-party vendors for critical services, exposing the company to operational, cybersecurity, and informational risks if vendors fail to fulfill obligations.
Changes in economic and political conditions, such as recession, unemployment, or government policy shifts, could adversely affect loan repayment ability and collateral values.
Volatility in the fair value of certain investment securities due to market conditions, interest rates, or credit risk, potentially impacting earnings and regulatory capital.
Operating in a highly competitive market, including competition from non-banks and fintechs, which could lead to market share decline and pricing pressures.
Liquidity risk, where access to funding sources could be impaired by factors affecting the company or the financial services industry generally, potentially leading to deposit outflows.
Adverse effects from the soundness of other financial institutions due to interdependencies in the financial services industry.
Changes in interest rates may adversely affect net interest income, which is a significant component of earnings.
Potential acquisitions may disrupt business, dilute shareholder value, and incur substantial costs, with no guarantee of expected benefits.
Acquisitions may be delayed, impeded, or prohibited due to regulatory issues, including those related to BSA compliance, CRA, and consumer protection laws.
Stock price volatility due to various factors, including operating results, analyst recommendations, industry trends, economic conditions, and geopolitical events.
Dividend payments by subsidiaries to the parent company and by the parent to shareholders can be restricted by regulatory policies.
Investment in common stock is not an insured deposit and is subject to market risks.
Failure to maintain effective internal controls over financial reporting could impair accurate financial reporting or prevent fraud.
Certain banking laws may have an anti-takeover effect, making it more difficult to be acquired.
Potential need for additional capital in the future, which may not be available on acceptable terms.
New accounting or tax pronouncements or interpretations could negatively impact financial results.
Unanticipated environmental liabilities or costs related to real property owned or acquired through foreclosure.
Severe weather, natural disasters, public health issues, acts of war or terrorism, and other external events could significantly impact business operations and financial condition.
Climate-related physical and transition risks may materially affect business and results of operations, with evolving laws and regulations potentially leading to higher compliance costs and reputational risks.

Future Outlook

United Bankshares, Inc. continues to monitor the potential impact of evolving trade policies and the provisions of The One Big Beautiful Bill Act, though no material adverse effects are currently expected. The company anticipates meeting its obligations over the next 12 months with no material capital expenditure commitments and no known trends likely to materially impact liquidity. Management acknowledges the inherent uncertainties in economic conditions and regulatory policies, which could affect future business and earnings, and expects to achieve operating cost savings and other business synergies from the Piedmont acquisition. Discretionary contributions to the pension plan may be made in 2026, but the amount cannot be reasonably estimated.

Management Comments

Management is vigorously pursuing all its legal and factual defenses and, after consultation with legal counsel, believes that all such litigation will be resolved with no material effect on Uniteds financial position.
Management believes that the allowance for credit losses of $332.59 million at December 31, 2025 is adequate to provide for expected losses on existing loans and lending-related commitments based on information currently available.
Management is not aware of any potential problem loans or leases, trends or uncertainties, that it reasonably expects, will materially impact future operating results, liquidity, or capital resources that have not been disclosed.

Industry Context

StockSavvy.ai notes that the banking industry continues to navigate a complex regulatory landscape, including evolving capital requirements (Basel III), consumer protection laws (CFPB), and anti-money laundering (AMLA) obligations. The increasing sophistication of cyber threats and the rise of fintech/wealthtech competitors are also significant industry trends impacting traditional banks like United. The consolidation of mortgage banking operations and exiting the TPO business reflects a broader industry trend of streamlining operations and focusing on core competencies in a challenging mortgage market. The acquisition of Piedmont Bancorp aligns with regional banks' strategies for geographic expansion into high-growth markets like Atlanta.

Comparison to Industry Standards

United's Return on Average Assets (ROAA) of 1.41% and Return on Average Equity (ROAE) of 8.63% for 2025 are generally competitive within the regional banking sector, aligning with targets of 1.0-1.5% for ROAA and 8-12% for ROAE seen in larger regional banks.
The Allowance for Loan Losses (ALL) to nonperforming loans ratio of 293.22% indicates strong coverage of problematic assets, providing a healthy buffer compared to many industry peers, despite a decrease from 370.36% in 2024.
The company's 52 consecutive years of dividend increases demonstrate a strong and consistent commitment to shareholder returns, a benchmark for stable, mature financial institutions.
United's capital ratios (CET1 of 13.4%, Tier 1 of 13.4%, Total Capital of 15.7%, and Leverage Ratio of 11.3%) significantly exceed the 'well-capitalized' regulatory minimums (CET1 6.5%, Tier 1 8.0%, Total Capital 10.0%, Leverage 5.0%), positioning the company favorably for capital strength compared to industry standards.

Corporate Governance

Change Type	Description	Effective Date	Impact Assessment
Equity Incentive Plan Approval	Shareholders approved the 2025 Equity Incentive Plan (2025 EIP) on May 14, 2025, replacing the 2020 Long-Term Incentive Plan. Awards under the 2025 EIP are subject to the company's Compensation Recoupment Policy.	2025-05-14	Enhances long-term incentive structure and aligns executive compensation with performance and clawback provisions.
Clawback Policy Adoption	United adopted a clawback policy on November 17, 2023, in response to SEC mandates, requiring recovery of excess incentive-based compensation.	2023-11-17	Strengthens corporate governance by ensuring accountability for executive compensation in cases of financial restatements.
Insider Trading Policy Revision	The Insider Trading Policy was revised on February 23, 2026, outlining guidelines for transactions in company securities and handling confidential information.	2026-02-23	Reinforces compliance with securities laws and prevents insider trading, enhancing market integrity and investor confidence.
Risk Management Oversight	The Board of Directors' Risk Committee oversees the Enterprise Risk Management Program, including information security, vendor management, and business continuity planning.	NA	Ensures robust oversight of critical risks, including cybersecurity, by a dedicated board committee.
Cybersecurity Governance	The Chief Risk & Information Officer (CIRO) reports regularly to the Risk Committee and Board, and the Chief Information Security Officer (CISO) leads daily cybersecurity efforts, reporting quarterly to the Governance Steering Committee and Board Risk Committee.	NA	Establishes clear lines of responsibility and reporting for cybersecurity, integrating it into overall risk management.

Legal Proceedings

United and its subsidiaries are currently involved in various legal proceedings in the normal course of business. Management is vigorously pursuing all its legal and factual defenses and, after consultation with legal counsel, believes that all such litigation will be resolved with no material effect on Uniteds financial position.

Related Party Transactions

Loans to directors and officers of United and its subsidiaries, and their associates, totaled $42.44 million at December 31, 2025, compared to $22.70 million at December 31, 2024.
Deposits from directors and officers of United and its subsidiaries, and their associates, totaled $32.82 million at December 31, 2025, compared to $34.19 million at December 31, 2024.
Unfunded commitments in low income housing, community development, and other partnerships include $5 million to a related interest of a director of the Company at December 31, 2025.

Stakeholder Impact

Shareholders: Benefited from increased net income, diluted EPS, and the 52nd consecutive year of dividend increases. Stock repurchase plans also provide potential value. However, increased credit losses and nonperforming loans could pose future risks.
Customers: Benefited from expanded geographic presence and service offerings due to the Piedmont acquisition. Digital banking services continue to be enhanced. Potential impact from evolving consumer protection laws and data sharing rules (CFPB).
Employees: The Piedmont acquisition led to an increased employee headcount. The company emphasizes human capital management, including recruiting, development, competitive compensation, and comprehensive benefits. The 2025 Equity Incentive Plan and clawback policy affect executive compensation.
Regulators: The company remains well-capitalized, exceeding all regulatory requirements. Compliance with extensive federal and state regulations, including new accounting standards and cybersecurity guidance, is ongoing.
Communities: The company's community banking focus and investments in low-income housing and community development partnerships contribute to local economies. CRA rating of 'Satisfactory' indicates commitment to community credit needs.

Next Steps

Continue to evaluate and apply the provisions of The One Big Beautiful Bill Act (OBBBA).
May make a discretionary contribution to the defined benefit pension plan in 2026.
Federal banking regulators intend to issue a revised proposal for Basel III Capital Rules in 2026.
FinCEN's rule extending anti-money laundering obligations to registered investment advisers will become effective on January 1, 2028.
ASU 2025-09, ASU 2025-03, ASU 2024-04, ASU 2024-03, and ASU 2025-01 are effective for annual periods beginning after December 15, 2026.
ASU 2025-11 and ASU 2025-06 are effective for annual periods beginning after December 15, 2027.
The 2026 Annual Shareholders Meeting is scheduled for May 13, 2026.

Key Dates

Date	Description
1982-03-26	United Bankshares, Inc. incorporated.
1982-09-09	United Bankshares, Inc. organized.
1984-05-01	United Bankshares, Inc. began conducting business with the acquisition of three wholly-owned subsidiaries.
2008-12-23	Shareholders authorized the issuance of preferred stock up to 50,000,000 shares.
2010-07-01	Dodd-Frank Act enacted.
2014-01-01	Acquisition of Virginia Commerce Bancorp, Inc. closed.
2015-11-01	Bank of Georgetown transaction announced.
2016-06-01	Bank of Georgetown transaction closed.
2016-08-01	Cardinal Financial Corporation acquisition announced.
2017-04-01	Cardinal Financial Corporation acquisition closed.
2019-01-01	Basel III Capital Rules fully phased in.
2020-03-01	Federal bank regulatory agencies issued an interim final rule providing an option to delay the effect of CECL on regulatory capital.
2020-05-01	Acquisition of Carolina Financial Corporation completed.
2021-12-03	Acquisition of Community Bankers Trust Corporation completed.
2022-05-11	Board of Directors approved the 2022 stock repurchase plan to repurchase up to 4,750,000 shares.
2022-06-01	FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions.
2022-10-01	SEC adopted the final clawback rule mandated by Section 954 of the Dodd-Frank Act.
2022-10-18	FDIC adopted a final rule that increased the initial base deposit insurance assessment rates for insured depository institutions by 2 basis points.
2022-12-01	FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848.
2022-12-31	Inflation Reduction Act of 2022 (IRA) 1% excise tax on stock repurchases effective for repurchases after this date.
2023-01-01	Increased FDIC assessment rate schedules became effective.
2023-03-01	FASB issued ASU 2023-02, Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.
2023-06-30	Intended cessation date of LIBOR in the United States took effect.
2023-07-01	Federal banking regulators proposed revisions to the Basel III Capital Rules.
2023-08-01	FASB issued ASU 2023-05, Business Combinations – Joint Venture Formations (Subtopic 805-60).
2023-09-01	FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SECs Disclosure Update and Simplification Initiative.
2023-10-02	New York Stock Exchange and Nasdaq Stock Market adopted required listing standards for compensation recovery, making incentive compensation received by executives on or after this date subject to recovery policies.
2023-11-01	FDIC issued a final rule to implement a special assessment to recover losses to the DIF.
2023-11-17	United adopted a clawback policy.
2023-12-01	FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.
2023-12-01	FASB issued ASU 2023-09, Improvements to Income Tax Disclosures.
2023-12-31	United exited the third-party origination (TPO) business.
2024-01-01	ASU 2023-02 and ASU 2022-03 became effective for United.
2024-01-01	United consolidated the mortgage origination and sales business of George Mason Mortgage, LLC and Crescent Mortgage Company with United Bank during the first quarter.
2024-05-09	Agreement and Plan of Merger with Piedmont Bancorp, Inc. dated.
2024-08-05	United adopted an Insider Trading Policy.
2024-10-01	CFPB issued a final rule requiring providers of payment accounts to make data available to consumers upon request.
2024-11-01	FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses.
2024-11-01	FASB issued ASU 2024-04, Induced Conversions of Convertible Debt Instruments.
2024-12-31	ASU 2022-06 (Reference Rate Reform) expiration date.
2025-01-01	CECL phase-in period ended for United, with 2025 regulatory capital ratios reflecting the full impact from CECL.
2025-01-01	ASU 2023-05 (Business Combinations – Joint Venture Formations) effective for joint venture formations with a formation date on or after this date.
2025-01-10	United consummated its acquisition of Piedmont Bancorp, Inc.
2025-01-10	The Piedmont Bank merged with and into United Bank.
2025-01-01	FASB issued ASU 2025-01, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40).
2025-05-01	FASB released ASU 2025-03, Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity.
2025-05-14	United's shareholders approved the 2025 Equity Incentive Plan (2025 EIP), which became effective on this date.
2025-07-01	FASB released ASU 2025-05, Measurement of Credit Losses for Accounts Receivable and Contract Assets.
2025-07-04	President Trump signed H.R. 1, The One Big Beautiful Bill Act (OBBBA).
2025-08-01	President Trump signed Executive Order 14331, Guaranteeing Fair Banking Access for All Americans.
2025-08-01	Financial Crimes Enforcement Network (FinCEN) adopted a rule extending anti-money laundering obligations to registered investment advisers.
2025-09-01	FASB released ASU 2025-06, Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software.
2025-11-01	FASB released ASU 2025-08, Financial Instruments—Credit Losses (Topic 326): Purchased Loans.
2025-11-20	Board of Directors approved a new repurchase plan (the 2025 Plan) to repurchase up to 5,000,000 shares of common stock, replacing the 2022 Plan.
2025-12-01	FDIC adopted an interim rule to adjust the special assessment, reducing the rate for the final quarter (Q1 2026).
2025-12-01	FinCEN delayed the effective date of its rule extending anti-money laundering obligations to registered investment advisers to January 1, 2028.
2025-12-01	FASB released ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements.
2025-12-01	FASB released ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements.
2026-01-31	United Bankshares, Inc. had 139,419,485 shares of common stock outstanding.
2026-02-20	Closing sale price for United's common stock was $44.28.
2026-02-23	United Bankshares, Inc. Insider Trading Policy revised.
2026-02-27	Annual Report on Form 10-K filed with the SEC.
2026-05-13	2026 Annual Shareholders Meeting to be held.

Recommendation

buy

United Bankshares, Inc. demonstrated strong financial performance in 2025, marked by significant increases in net income, diluted EPS, and key profitability ratios (ROAA, ROAE, ROATE). The successful integration of Piedmont Bancorp, Inc. drove substantial growth in assets, loans, and deposits, expanding the company's market footprint. Despite an increase in credit loss provisions and nonperforming loans, the company maintains a robust allowance for loan losses and significantly exceeds all regulatory capital requirements, indicating a strong and stable financial position. The consistent track record of 52 consecutive years of dividend increases underscores a commitment to shareholder returns. These factors suggest a healthy and growing institution with a favorable outlook for investors.

Keywords

Banking, Financial Services, Regional Bank, Acquisition, Piedmont Bancorp, Net Income, Earnings Per Share, Loans, Deposits, Net Interest Income, Credit Quality, Capital Adequacy, Dividends, Stock Repurchase, Cybersecurity, Interest Rate Risk, Commercial Real Estate, Mortgage Banking, SEC Filing, 10-K, UBSI

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